<p>Recently, transformerless PV inverters have been commonly adopted thanks to their advantages when compared with those using transformers. However, because of the absence of galvanic isolation, a leakage current can be induced due to the common mode voltage (CMV). This current has the ability to reach the ground via the leakage capacitors connecting the PV panel to the grounded frame, causing performance degradation of the overall PV system. In this context, the presented work investigates the leakage current attenuation through the decreasing of the CMV generated in a three-level (3L) neutral point clamped power converter using an enhanced space vector modulation algorithm. Also, the suggested modulation algorithm is implemented in real-time by means of an XSG library and a FPGA Virtex 5 board to guarantee swift prototyping of the controller. This CMV reduction (CMV-R) method consists to simplify the 3L space vector diagram to six two-level ones. Thereafter, the zero voltage vector is synthesized with a virtual manner through an appropriate combination of two active vectors that belong to a two-level hexagon. Consequently, a decrease of the CMV can be achieved. A comparative analysis with the classical SVPWM algorithm shows that the proposal can effectively reduce the CMV variation without worsening the inverter’s performance regarding the utilization of DC-bus voltage. Additionally, the proposed algorithm is compared with an existing SVPWM scheme specifically designed for CMV reduction, known as the large, medium, and zero vectors (LMZV) method. The comparison results demonstrate that the proposed method outperforms the LMZV method in terms of leakage current reduction. The hardware-in-the-loop results confirm the effectiveness of the proposed CMV-R method for integration into a real-time environment, meeting the desired levels of accuracy and reliability.</p>